OTTAWA, Feb 28 (Reuters) – Alberta, the primary producer of crude oil in Canada, announced on Wednesday that it would prohibit renewable power projects on prime agricultural land and establish buffer zones to preserve scenic views from potential disruption by wind turbines.
The provincial government provided limited details, stating that additional announcements would follow. This move raised concerns within the renewable energy sector, with one green group expressing discontent, labeling it an “uncertainty bomb” dropped on the once-thriving industry.
Last year, Alberta temporarily suspended approvals for major new projects, citing concerns about the reliability of renewables and their impact on land use. This pause not only cooled investment in the industry but also presented challenges to the federal Liberal government’s clean energy aspirations.
Despite these challenges, Alberta has been a frontrunner in the country’s renewable capacity expansion, aiming to eliminate the combustion of coal for power this year, six years ahead of schedule.
The province’s right-of-center government announced that the suspension on approvals would be lifted on Thursday. Still, it emphasized adopting an “agriculture first” approach for proposed projects.
Premier Danielle Smith, voicing concerns about the reliability of renewable projects compared to gas-fired plants, cautioned that Ottawa’s push to reduce carbon emissions might adversely affect the provincial energy industry.
Under the new regulations, Alberta will prohibit renewable generation projects on land deemed to have excellent or good irrigation capability. The government will also establish buffer zones, a minimum of 35 km (22 miles) around protected areas or areas deemed to offer pristine views, where new wind turbine projects will be restricted. The comprehensive policy is expected to be finalized by the end of 2024.
Evan Pivnick of the Clean Energy Canada group criticized the government’s approach, stating that it has introduced uncertainty for renewable project investors and developers, leaving many questions unanswered.
As Alberta generates the majority of its electricity from natural gas and produces over 82% of the country’s crude oil, the government expressed concerns about the cleanup costs of renewables projects once they are decommissioned. Developers will now be required to provide a bond or security.
RBC Dominion Securities analyst Nelson Ng suggested in a note to clients that these new rules could potentially slow the pace of renewable development. George Chalal, one of the two federal Liberal legislators in Alberta, accused Premier Smith of continuing an “ideological crusade against renewables” that could result in job losses.